- Cryptocurrency exchange CoinEx rebuilds after a massive $70 million security breach.
- The platform is resuming deposit and withdrawal services, starting with major tokens.
- Enhanced security measures have been implemented to ensure user asset safety.
The CoinEx $70 Million Incident
More than a week ago, CoinEx, a prominent cryptocurrency exchange, found itself amidst a crisis – a hack that resulted in a loss of $70 million. This breach was attributed to compromised hot wallet private keys. Amidst the chaos and uncertainty, the platform acted swiftly, focusing on securing its users’ assets and rebuilding its system.
New Security Measures and Wallet System
In the wake of the hack, CoinEx’s primary concern was to establish a fortified environment for its users. According to their communication with Cointelegraph, the exchange’s immediate plan was to design and implement a new wallet system. This new system would facilitate transactions across the 211 blockchains and 737 tokens it previously supported. This endeavor wasn’t just about recovery; it was about advancing forward with a more robust security infrastructure.
Resumption of Services
As per the recent announcements from CoinEx, starting September 21, the platform will reactivate deposit and withdrawal services for a select group of cryptocurrencies, including BTC, ETH, USDT, and USDC. To ensure utmost security, CoinEx will be updating deposit addresses for the said tokens. Furthermore, new deposit addresses will be generated for its clientele. As a precautionary measure, users have been advised against depositing into old addresses as this would lead to irreversible asset loss. While users might experience a backlog given the pent-up demand, the exchange has assured everyone of the new wallet system’s stability and gradual resumption of services for more assets.
Ensuring User Asset Security
One of the most significant concerns for any exchange, especially after a breach, is ensuring the safety of user assets. CoinEx has risen to the occasion by implementing a 100% asset reserve policy. This policy is designed to protect users from future potential security threats. In reassuring news for the platform’s users, CoinEx had clarified post the hack that user assets remained unaffected. Furthermore, any financial loss that might be incurred would be covered by the CoinEx User Asset Security Foundation. As of now, Cointelegraph awaits a response from CoinEx regarding the possibility of refunds if any assets were or will be affected due to the incident.
Conclusion
The CoinEx incident serves as a stark reminder of the potential vulnerabilities in the crypto space. However, the exchange’s quick response, transparency, and efforts towards bolstering security exemplify how platforms can rebuild trust. As the crypto world watches, CoinEx’s journey of recovery and advancement reinforces the importance of proactive security measures and user-centric policies in the ever-evolving digital currency landscape.
